Four Models of Development 1. Self Sufficiency Approach 2. International Trade Approach 3....

Four Models of Development

1. Self Sufficiency Approach 2. International Trade Approach3. Rostow’s Modernization Model4. Wallerstein’s World Systems

Model

1. Self Sufficiency Approach

aka

“Keep your greedy little hands off my country you capitalist bastards!”

2. International Trade Approach

aka

“Uh, maybe we could use just a little help (you capitalist bastards!)”

Self Sufficiency Approach International Trade Approach

When?

Other Names and Associations

Main Characteristics

Advantages

Problems

Examples

Self Sufficiency Approach International Trade Approach

When? Most of 20th century Late 20th century to today

Other Names and Associations

Main Characteristics

Advantages

Problems

Examples

Self Sufficiency Approach International Trade Approach

When? Most of 20th century Late 20th century to today

Other Names and Associations

Balanced Growth /

anti-neocolonialism Modernization Model /

Rostow

Main Characteristics

Advantages

Problems

Examples

Self Sufficiency Approach International Trade Approach

When? Most of 20th century Late 20th century to today

Other Names and Associations

Balanced Growth /

anti-neocolonialism Modernization Model /

Rostow

Main Characteristics

• Spread investment as equally as possible through all regions of country and all industries and sectors of economy

• protect domestic (home) industries through tariffs, import quotas and import licenses

• Identify one or a few distinct or unique economic assets and resources, develop those industries, and… Use profits from your strong sector or sectors for more general development of country

Self Sufficiency Approach International Trade Approach

Advantages

• Promotes balanced, diversified economy

• Promotes independence from MDCs

• Slow but fair growth (fighting poverty is # 1 goal)

• Local industries benefit from international competition (forced to innovate)

Problems

Examples

Self Sufficiency Approach International Trade Approach

Advantages

• Promotes balanced, diversified economy

• Promotes independence from MDCs• Slow but fair growth (fighting poverty

is # 1 goal)

• Local industries benefit from international competition (forced to innovate)

Problems

• Protects, rewards inefficient industries that don't have to compete or innovate on quality or price of their products

• Increases prices of consumer goods

• Huge government bureaucracies

• Corruption

• NEOCOLONIALIST! (still dependent on MDCs markets (buy my oil!) and for necessities (can't live off oil or copper!)

• Economy not diversified (oil in Middle East, coffee, minerals in Africa) therefore vulnerable to market fluctuations

• Profits from extraction don't get evenly distributed (corruption)

Self Sufficiency Approach International Trade Approach

Examples

• India (best example but only up to 1990's)

• China (until 1990's)• Africa• Eastern Europe

• India (after 1990's)• “Asian Tigers/Dragons”:

S. Korea, Singapore, Hong Kong, Taiwan (clothing/electronics)

• Arabian Peninsula (oil)

Rostow’s Modernization

Theory

(aka “Rostow’s Ladder of

Development” Model)

Walt Rostow's model from the 1960's assumes that all countries follow a similar path to economic development, passing through identifiable stages, (which, of

course, he indentified). See if you agree with these assumptions.

Rostow’s Development Ladder

Rostow's Modernization Model of Development

Key Characteristics Criticisms/Problems

Rostow's Modernization Model of Development

Key Characteristics Criticisms/Problems• Basic idea: All countries

follow a similar path of development through five predictable stages

• Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs?)

• Money from natural resources in LDCs will fuel their development

Can you think of any criticisms of Rostow’s Model?

In particular, why might Rostow’s model be unsatisfying to human geographers who are trained to study phenomenon (such as development) using the concepts of

a. scale (the relationship between one portion of earth to the whole) and

b. connection (the relationship of phenomenon across space)?

Rostow's Modernization Model of Development

Key Characteristics Criticisms/Problems• Basic idea: All countries

follow a similar path of development through five predictable stages

• Based on post WWII economic miracles in Europe and Japan (worked for them, why not for LDCs?)

• Money from natural resources in LDCs will fuel their development

• No context. Treats countries as autonomous units isolated from global forces. Development is not just based on what happens within a country (Mali not equal to Japan!)

• Has a Western, Industrial Revolution bias (conditions for "takeoff" for Great Britain in 1750 don't apply to LDCs.)

• No place in Rostow's model for war, political and cultural decision making.

• Model assumes development is all good (what about social disruptions, loss of culture, environmental costs).

• Need sixth stage: deindustrialization? Small is beautiful.

Immanuel Wallerstein’s

World Systems Theory

(aka Wallerstein’s

“Core-Periphery Model”)

Wallerstein’s World System’s Theory

Three related concepts:

1. The Self-Sufficiency Model (as one way of avoiding the exploitation predicted by Wallerstein) 2. Neo-Colonialism (explains

roots of today’s exploitation)3. Dependency Theory (another name for this theory; periphery isdependent on core)

World-Systems Theory: Three TiersCore

•Regions with higher levels of education, higher salaries, more technology •Generate more wealth in the world economy •Exploits Semi-Periphery and Periphery by exploiting cheap labor and raw materials and by doing so gains and maintains dominant position.

Semi-periphery • Regions where core and periphery processes are both

occurring• Exploited by the Core but then exploits the Periphery • Serves as a buffer between Core and Periphery

Periphery•Regions with lower levels of education, lower salaries, and less technology •Generates less wealth in the world economy •Exploited by Core and Semi-Periphery (Think: “Periphery sells low and buys high.”

C. Wallerstein Four Key Points:

1. Exploitation is a function of the basic drive for profit in an interconnected global capitalist system. Development must be seen in this context.

2. The global capitalist market includes an international division of labor. This means industry can and will shift production from

MDCs to LDCs in search of lowest labor costs (i.e. maquiladoras)

3. Raw materials and cheap labor flow from periphery to core. High profit consumption goods flow from core to periphery.

4. Wallerstein's model can be applied not only at global but also at local scale. (US Northeast= Core, US South = Periphery, etc.)

Who’s who in Wallerstein? Depends on who you ask. Here’s one interpretation.

Here’s another. Differences from previous map?

And a third. Differences? (and why can’t poor Greenland at least be something???)

E. Wallerstein's World Systems Theory may seem to just replace the terms "developed, developing, and underdeveloped" or "traditional society", "take off", and "high mass consumption" with "periphery", "semi-periphery" and "core". But Wallerstein's and Rostow's Modernization Theory are fundamentally different in two ways:

1. Wallerstein, unlike Rostow, doesn't say development is inevitable or predictable. In fact, Wallerstein holds that not all places can be equally developed or wealthy at the same time. In other words, Wallerstein, unlike Rostow, assumes an exploiter requires and “exploitee”.

2. Wallerstein, unlike Rostow, doesn't assume development will occur the same way in all places.